Ubiquitous broadband in Minnesota by 2015.
That Minnesota has available the following minimum speeds by 2020 Mbps (download):
■ 10-20 Mbps (download) ■ 5-10 Mbps (upload)
Also, that Minnesota, by 2015:
■ Will be in the top 5 states of the United States for overall broadband speed (download/upload). ■ Will be in the top 5 states of the United States for broadband penetration.
■ Will be in the top 15 when compared to countries for global broadband penetration.
The Ultra High-Speed Task Force also makes note of the desirability of symmetrical speeds where possible, espe- cially for advanced applications such as telemedicine, telework, and distance education. These broadband avail- ability goals were codified in the state of Minnesota by HF2097 in 2010 (see Minnesota Statute Ch. 237.012). At the present point in time, Minnesota’s availability of speeds matching its goals are that roughly 84% of house- holds have broadband available at a speed of 10 Mbps download (advertised) and that roughly 55% of households have access to broadband at a speed of 25 Mbps (advertised) or faster.
Table 12 – Estimate of Broadband Service Availability in the State of Minnesota –
At 10 Mbps or Faster
SBDD Download Speed Tiers HouseholdsUnserved HouseholdsServed Percent Households By Speed Tier
At Least 10 Mbps 301,312 1,593,815 84.10%
At Least 25 Mbps 850,309 1,044,818 55.13%
Source: Connect Minnesota, October 2010
The Ultra High-Speed Task Force makes recommendations in several sections dealing with broadband availability, including:
Mobilize communities and their human, technological, and organizational resources, which includes: the collection and dissemination of best practices; the collation of information on current broadband-mobilizing projects in the state; the monitoring of federal initiatives that promote broadband planning, coordination or construction (such as the Connect Minnesota program or the many programs described in Section 3.5); and the endorsement of a col- laborative effort (such as the Minnesota Broadband Advisory Task Force and the Connect Minnesota program) that can provide an ongoing focal point and funding for these tools and activities.
The Ultra High-Speed Task Force’s report also recommended that Minnesota pass legislation to form a multi- stakeholder Broadband Advisory Council for Minnesota. The current Minnesota Broadband Advisory Task Force was created after the enactment of HF2097. Connect Minnesota assumes that goals established for the Broad- band Advisory Task Force will be addressed by the Task Force itself and will work to ensure that its current and future work assists the Broadband Advisory Task Force in the completion of its mission.
The Ultra High-Speed Task Force’s report (see page 61) also recommends that the state work toward expansion of the definition of Federal Universal Service Fund (USF) to include broadband. As noted above, Connect Minnesota recommends tracking and engaging with the FCC on this topic. At this stage, while accepting that reform of the USF is one of the more complicated elements of the NBP, the inevitable reform of the USF will include broadband. The question remains as to what extent the USF will fund broadband, how it will treat existing USF recipients, and the funding levels available to the USF.
4.3.2 Broadband Adoption
The Ultra High-Speed Task Force correctly perceived in its report that broadband adoption is critical to meeting its goals of broadband ubiquity in Minnesota, and states, “Increasing adoption among those who already have the capability to receive broadband is not only good for individuals and society, it is also a key factor in facilitating the ability of providers to access further capital for additional deployment.”
The Technology Assessment contained in Appendix A of this report contains a detailed benchmark on the current state of broadband adoption in Minnesota, both at an aggregate level and across several key demographic sec- tors.
4.3.3 Infrastructure Security
The Ultra High-Speed Task Force noted in its report the difficulty of assessing the state infrastructure security and redundancy when confronted with the confidential and proprietary nature of broadband infrastructure data. The Connect Minnesota broadband inventory mapping activity has confronted this same challenge, and is guided by regulations crafted by the NTIA to ensure the confidentiality of proprietary data. Connect Minnesota recom- mends that the State look for guidance in the experience of the federal Department of Homeland Security’s efforts to implement the Homeland Security Act of 2002, which led to the creation of the National Infrastructure Protec- tion Plan (NIPP). In the NIPP, DHS discusses the issue of the sensitivity of telecommunications infrastructure data, and as the state of Minnesota works to harden its communications infrastructure key insight may be gained from experience of the federal government.
4.3.4 Cyber security
the State in its pursuit of these goals, Connect Minnesota has compiled an initial technology assessment regarding online activities pertaining to cyber security (also contained in Appendix A):
■ 12% of Minnesotans with no home broadband connection and 18% with no Internet connection at home
say it is because they are concerned about fraud or identity theft.
4.3.5 e-Government
The Minnesota Ultra High-Speed Broadband Report makes several recommendations regarding access to high- speed broadband service for the purpose of improving and expanding e-Government services. To assist the State in its pursuit of these goals, Connect Minnesota has compiled an initial technology assessment regarding online activities pertaining to e-Government (also contained in Appendix A):
■ 52% of Minnesotans search for information about government services or policies online;
■ 37% of Minnesotans interact with state government online, 28% interact with their local government, and
25% interact with elected officials or candidates;
■ 48% of Minnesotans conduct online transactions with government offices.
4.3.6 e-Economic development
The Minnesota Ultra High-Speed Broadband Report makes several recommendations regarding access to high- speed broadband service for the purpose of economic development, including data transfer, telecommuting, and increased business opportunities. To assist the State in its pursuit of these goals, Connect Minnesota has com- piled an initial technology assessment regarding online activities pertaining to economic activities (also contained in Appendix A):
■ 80% of Minnesotans search for product or service information online; ■ 46% of Minnesotans search for jobs or employment online;
■ 59% of Minnesotans interact with businesses online, and 56% interact with their co-workers online; ■ 78% of Minnesotans purchase products or services online, 69% conduct online banking, 66% book travel
arrangements online, 65% pay bills online, 32% sell products or services online, and 21% buy, sell or trade investments online;
■ 37% of Minnesotans work from home (20% regularly telework now and 27% would telework if allowed); ■ Three out of ten Minnesota adults (30%) who are not currently in the workforce say they would work if em-
powered to do so through teleworking. This includes 17% of retirees, nearly three out of five unemployed adults, and almost one-third of homemakers.
Also, at the time of the compilation of this report, Connect Minnesota is in the process of completing an initial technology assessment of businesses in Minnesota. The results of this study should be made available in the first or second quarter of 2011, and should assist the Minnesota Broadband Advisory Task Force as it continues work on e-Economic Development goals.
4.3.7 e-Health
The Minnesota Ultra High-Speed Broadband Report makes several recommendations regarding access to high- speed broadband service for the purpose of enhancing access to healthcare services. To assist the State in its pursuit of these goals, Connect Minnesota has compiled an initial technology assessment regarding online activi- ties regarding e-Health or telemedicine (also contained in Appendix A):
■ 70% of Minnesotans search for health or medical information online, including 66% of seniors;
■ 37% of Minnesotans interact with their health insurance company, and 31% interact with their doctor or
healthcare professionals online.
4.3.8 e-Learning
The Minnesota Ultra High-Speed Broadband Report makes several recommendations regarding access to high- speed broadband service for the purpose of education and e-Learning. To assist the State in its pursuit of these goals, Connect Minnesota has compiled an initial technology assessment regarding online activities e-Learning (also contained in Appendix A):
■ 46% of Minnesotans conduct research for schoolwork online, including 60% of those aged 35 to 44; ■ 39% of Minnesotans interact with their teachers online;
■ 22% of Minnesotans take online classes.
Future iterations of this report will seek to address and adapt key proposals from the National Broadband Plan that address key national purposes, as well as provide updates on Connect Minnesota broadband inventory and survey research activities and findings.
Appendix A:
Connect Minnesota Residential Technology Assessment
June 2010
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
Connect Minnesota
Connect Minnesota
Residential Technology
Residential Technology
Assessment Results
Assessment Results
In compliance with state and NTIA requirements
In compliance with state and NTIA requirements
Summary of Key Findings
5
Broadband Adoption and Usage
11
Computer and Internet Adoption
23
Prices Paid by Minnesota Residents for Internet Service
33
Online Activities Among Minnesota Internet Users
39
Mobile Technology Adoption
47
Teleworking and Working From Home Through
an Internet Connection
53
Technology Adoption Barriers
57
March 2010 Technology Assessment of
Minnesota Residential Consumers
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
Residential Technology Assessments
Assessment by Age
63
Assessment by Annual Household Income
75
Assessment by Race/Ethnicity
87
Assessment by Urban-Rural Classification
99
Assessment by Education
111
Assessment of Households With Children
123
Assessment by Employment Status
135
Research Methodology
147
3
March 2010 Technology Assessment of
Minnesota Residential Consumers
Presentation Outline (Continued)
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
Summary of Key Findings
Summary of Key Findings
5
Key Findings: March 2010
Key Technology Benchmarks, March 2010:
•Households with broadband service: 72%
•Households with a computer: 85%
•Residents who access the Internet from home or someplace else: 91%
•Residents who subscribe to mobile broadband via laptop or cell phone/mobile device: 26%
Other Key Findings:
•Across Minnesota, 72% of all residents subscribe to home broadband service; by comparison, a national survey shows that 67% of American households subscribe to home broadband service. •Statewide, 85% of all Minnesota residents own a home computer. This translates into over 588,000 adults without a home computer, with 73% of those without a computer saying they don’t believe they need a computer.
•Statewide, 4% of Minnesota residents report that broadband is not available where they live, 89% say with certainty that broadband is available, and 7% do not know whether broadband service is available. By comparison, Connect Minnesota’s provider-validated Broadband Service Inventory found that 3.4% of households do not have terrestrial fixed broadband service access.
•In rural Minnesota, 6% of adults report that broadband service is not available where they live, 83% say with certainty that broadband is available, and 11% do not know whether broadband service is available where they live. By comparison, Connect Minnesota’s provider-validated Broadband Service Inventory reports that 7.4% of rural households do not have terrestrial fixed broadband access.
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission. 7
Key Findings: March 2010 (Continued)
•Broadband adoption among rural residents is significantly lower than the state average.
•Residents ages 65 or older are less likely to subscribe to home broadband service, and they are also less likely to access the Internet altogether (from home or any other location).
•Statewide, 45% of broadband subscribers report that they have cable modem service at home, while 40% subscribe via DSL service. Satellite broadband accounts for 5%, wireless card/WiFi accounts for 1%, and fiber to the home service accounts for 7% of home broadband subscribers in Minnesota. Fixed wireless broadband accounts for 9% of all Minnesota broadband subscribers.
•Eighty percent of Minnesota Internet subscribers also subscribe to other “bundled” services from their Internet service provider. The most popular service to be bundled with home Internet service is home phone service, followed by television service.
•On average, Minnesota broadband subscribers pay $46.35 per month for their home broadband. Among those who do not subscribe to home broadband service, 31% cite cost as a barrier to adoption. •Nearly one-half (48%) of Minnesota residents who do not have home broadband service say it is because they do not need Internet service or don’t understand the benefits. More than one-third (35%) say it is because they do not own a computer.
•Among rural non-subscribers, the belief that they do not need broadband or the Internet is the top barrier, cited by nearly six out of ten (57%) rural residents without home broadband service.
Key Findings: March 2010 (Continued)
•The top applications used by Minnesota Internet users include communicating with friends and family, sending or receiving e-mail, using a search engine, and searching for products or services online. •Seven out of ten Minnesota Internet users search for health or medical information online, while 31% interact with doctors or healthcare professionals online.
•E-government services are utilized by many Minnesota Internet users; 52% report that they search online for information about government services or policies. In addition, 48% conduct online transactions with government offices (such as e-filing taxes or filling out forms), 37% interact with Minnesota state government offices, 28% interact with local government offices, and 25% interact with elected officials or candidates online.
•Many Minnesota Internet users go online for educational purposes. Statewide, 46% conduct research for schoolwork online, 39% interact with teachers online, and 22% take classes online.
•Minnesota residents also use the Internet for work purposes. Among Minnesota Internet users, 56% interact with their co-workers online, 46% go online to search for jobs or employment, and 37% report that they go online to work from home at least occasionally.
•In Minnesota, 20% of employed adults report that they telework. Teleworking could also provide an additional boost to the state’s workforce, as 17% of retirees, nearly three out of five unemployed adults, and almost one-third of homemakers say they would likely join the workforce if empowered to do so by teleworking.
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission. 9
Minnesota Technology
Adoption Summary
Don't know if home Internet service is dial- up or broadband 2% Don't use theInternet 9% Use broadband
from home 72%
Use dial-up from home
7%
Use the Internet someplace other than home
10%
Q: Do you have an Internet connection at home? and
Q: Which of the following describe the type of Internet service you have at home? (n=1,207 MN residents)
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org
Percent of all Minnesota residents
85% 53% 46% 69% 78% 77% 72% 39% 35% 53% 66% 58% Statewide Age 65 or older Low-income households* Low-income households with children*
Minority Rural residents
Computer ownership Broadband adoption
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org *Low-income=annual household income less than $25,000
Q: Does your household have a computer? and
Q: Which of the following describe the type of Internet service you have at home? (n=1,207 MN residents)
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
Broadband
Broadband
Adoption and UsageAdoption and Usage
11
Statewide, 72% of all Minnesota residents subscribe to home broadband service. This translates into over 2.8 million adults with broadband service at home.
Percent of all Minnesota residents who subscribe to home broadband service
Minnesota Residents Who Subscribe
to Home Broadband Service
Q: Which of the following describe the type of Internet service you have at home? (n=1,207 MN residents)
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org
72%
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission. 13
Minnesota Residents Who Subscribe
to Home Broadband Service
Q: Which of the following describe the type of Internet service you have at home? (n=1,207 MN residents)
67%
72%
National Average* Minnesota
Percent of all Minnesota residents with broadband service at home
Statewide, 72% of Minnesotans (approximately 2.8 million Minnesota adults) subscribe to
home broadband service.
*Source: Federal Communications Commission,
Broadband Adoption and Use in America, 2010.
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org
National surveys indicate that 67% of American households subscribe to home broadband
service.*
6%
1%
5%
7%
9%
40%
45%
Don't know/refused Wireless Card/WiFi Satellite broadband Fiber to the home Fixed wireless broadband DSL Cable modemPercent of all Minnesota broadband subscribers*
Statewide, 72% of
all Minnesota
adults have
broadband service
at home.
Types of Broadband Service
That Minnesota Residents Use
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org *Percentages do not add up to 100% because individuals could give multiple responses.
Q: Which of the following describe the type of Internet service you have at home? (n=856 MN residents with home broadband service)
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission. 15
Perceptions of Broadband
Availability in Minnesota
Statewide, 4% of Minnesota residents report that broadband is not available where they live, and 7% do not know
whether broadband service is available.
Q: To the best of your knowledge, is broadband or high-speed Internet service available in the area where you live?
(n=1,207 MN residents)
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org Don't know if broadband is
available where they live
7%
Say broadband is
not available where they live
4% Have broadband service, or say broadband is available where they live
89%
Awareness of broadband availability
among Minnesota residents
According to Connect Minnesota’s provider-
validated Broadband Service Inventory, 3.4%
of households do not have terrestrial fixed
broadband access.
Perceptions of Broadband
Availability in Minnesota
Among Rural Residents
Awareness of broadband availability
among rural Minnesota residents
Q: To the best of your knowledge, is broadband or high-speed Internet service available in the area where you live?
(n=400 rural MN residents)
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org In rural Minnesota, 6% of
adults report that broadband service is not available where they live, and 11% do not know whether broadband is available to them. According to Connect Minnesota’s provider- validated Broadband Service Inventory, 7.4% of rural households do not have terrestrial fixed
broadband access. Don't know if broadband is available where they live 11% Say broadband is not available where they live 6% Have broadband service, or say broadband is available where they live 83%
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
14%
17%
17%
23%
13%
15%
Within the last year 1 - 2 years ago 2 - 3 years ago 3 - 5 years ago 5 - 7 years ago More than 7 years ago 17 Q: When did you first begin subscribing to broadband service?(n=856 MN residents with home broadband service)
When Minnesota broadband users began subscribing
When Minnesota Residents First
Subscribed to Broadband
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org
4%
18%
30%
39%
43%
44%
48%
54%
Other Friends or family convinced me I heard about the benefits of broadband I needed to conduct business online I learned that broadband was available in my area The cost of broadband became more affordable I bought (or received) a computer for my home I realized broadband was worth the extra money*Percentages do not add up to 100% because individuals could give multiple responses. Q: Which of the following contributed to your decision to subscribe to broadband service? (n=856 MN residents with home broadband service)
Percent of Minnesota residents with a broadband connection at home*
Why Minnesota Residents
Subscribe to Broadband
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org
2010 © Connect Minnesota. All Rights Reserved. Do Not Copy Without Written Permission.
Broadband Download Speeds
52%
4%
4%
12%
8%
8%
4%
7%
Don't know Less than 768 Kbps About 768 Kbps About 1.5 Mbps About 3.0 Mbps About 6.0 Mbps About 10.0 Mbps Over 10.0 Mbps 19 Q: To the best of your knowledge, what is the approximate download speedor bandwidth provided by your Internet service provider? (n=856 MN residents with home broadband service)
Download speeds among Minnesota broadband subscribers
Minnesota broadband subscribers who know their download speeds
report an average speed of 5.9 Mbps.
Source: 2010 Connect Minnesota Residential Technology Assessment www.connectmn.org Don't know 9% Download speeds are faster than advertised 4% Download speeds are slower than advertised 27% Download speeds are about the same as advertised 60%
Among Minnesota residents with home broadband service
Nearly two-thirds of broadband subscribers